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PC - PUBLIC HEARING: Consideration of a Conditional Use Permit to convert an existing 3,150 square foot office tenant space to a Cannabis Retailer-Storefront business at 10000 Culver Boulevard (Project).
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Meeting Date: September 29, 2021
Contact Person/Dept: Jose Mendivil, Associate Planner
Phone Number: (310) 253-5757
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [X] Action Item: [] Attachments: [X]
Public Notification: (Mailed) Property owners and occupants within a 2,500-foot radius (09/07/2021); (Posted) City Website (09/07/2021); Meetings and Agendas-Planning Commission (09/21/2021).
Department Approval: Sol Blumenfeld, Community Development Director (09/16/2021)
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RECOMMENDATION:
Staff recommends the Planning Commission adopt a resolution adopting a Categorical Exemption, and approving Conditional Use Permit, P2021-0039-CUP, subject to conditions of approval and applicable code requirements, to allow a Cannabis Retailer-Storefront and managed parking.
PROCEDURES:
1. Chair calls on staff for a brief staff report and Planning Commission poses questions to staff as desired.
2. Chair opens the public hearing, providing the applicant the first opportunity to speak, followed by the general public.
3. Chair seeks a motion to close the public hearing after all testimony has been presented.
4. Planning Commission discusses the matter and arrives at its decision.
BACKGROUND:
Cannabis Ordinance relating to Cannabis Retailer-Storefront businesses
On March 26, 2018, the City Council adopted Ordinance No. 2018-007, reflecting the City's Commercial Cannabis Businesses regulations, and cited in Culver City Municipal Code (CCMC) Chapter 11.17, governing cannabis related sales, manufacturing, processing, distribution, delivery, testing and cultivation. A cannabis Retailer-Storefront is a specific type of retail land use that requires a Conditional Use Permit per the Zoning Code. The applicant for the proposed Conditional Use Permit (CUP), Sweet Flower, is considered a Cannabis Retailer-Storefront business. Chapter 11.17 and CCMC Title 17 (Zoning Code), define a Cannabis Retailer-Storefront as:
A storefront retailer is a commercial cannabis business facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale to customers at an on-site fixed location, including an establishment that also offers delivery of cannabis and cannabis products as part of a retail sale, in addition to on-site sales, and where the permittee holds a valid Commercial Cannabis Business Permit authorizing the operation of a retailer, and a valid state license as required by state law to operate a retailer.
In addition to a validly issued CUP, Chapter 11.17 requires the issuance of Commercial Cannabis Business Permit in order to engage in any commercial cannabis business or activity. The procedures governing the application process for a Commercial Cannabis Business Permit are set forth in City Council Resolution No. 2018-R014, adopted by the City Council on February 2, 2018, which includes the procedures for the application and selection process for commercial cannabis storefront retail businesses (Attachment No. 6). A two-step screening process was conducted by City staffed panels, for prospective stores prior Conditional Use Permit applications with the Current Planning Division. Prospective stores were required to submit a proposal that included among other materials, a proposed location, store front design, floor plans, business plan, and security plan. Applicants were also required to submit to a background security review with the Police Department.
The first screening involved review of all store submissions by a three (3) member panel comprised of a representative from the Current Planning Division, the Police Department, and the Economic Development Division. Twenty-three (23) stores submitted proposals and after review by the panel that included interviews, eight (8) stores were selected to move to the second screening phase. Sweet Flower submitted their proposal to the first panel on September 30, 2018, and received approval on March 22, 2019, to move to the next panel.
In the second screening, the eight prospective stores were interviewed by a five (5) member City panel comprised of the Police Department, Fire Department, Community Development Department, Finance Department, and Administrative Services Division. The panel selected the top three (3) prospective stores to move onto the Conditional Use Permit process with the Current Planning Division. Sweet Flower was among the top three (3) stores and received notification of selection to move forward in the application process on May 13, 2019. There were two administrative appeals after the second screening. The City waited until the end of the appeal period after the second screening before beginning the Conditional Use Permit (CUP) process. The City notified Sweet Flower that it could proceed with the CUP application process on September 9, 2019.
Appeals on the Screening Results and Court Action
After the two administrative appeals by applicants not selected to move forward after the second screening, one of the appellants filed a writ action in the Superior Court, challenging the outcome of its administrative appeal. In order to allow the top three applicants to move forward in the CUP process, the City requested that the top three applicants, including Sweet Flower, acknowledge in writing that there was ongoing litigation over the outcome of the screening process, and a court ruling had the possibility of impacting the selection of the top three applicants. In addition, the City informed the three applicants that a condition of approval would be included that the CUP shall be subject to the final decision in the writ of mandate proceeding. All three applicants, including Sweet Flower, signed the acknowledgement letter (Attachment 8 - Advisory Court Action Letter). After a hearing on the writ petition, the court granted the writ petition in part and remanded the matter back to the City for further proceedings. The Court did not invalidate the selection process or disturb the selection of the top three candidates that are each moving forward in the CUP application process. It is possible, however, that the matter could again be heard by the Superior Court, after the remanded proceedings conclude.
Request
The request involves the conversion of an existing 3,150 square foot ground floor office tenant space into a retail cannabis store with negligible modifications to the existing tenant space. In addition, valet managed aisle stacked parking is proposed to meet the required parking for the proposed use. See the Project Summary (Attachment No. 3) and the Preliminary Development Plans (Attachment No. 4) for a synopsis of the project details and plan lay out.
Existing Conditions/Project Site
The Project Site is located at 10000 Culver Boulevard with parking for the site located on-site and, on the property, directly south of 10000 Culver Boulevard at 4017 Lincoln Avenue. The Lincoln Avenue site is zoned Commercial Neighborhood (CN) and has a Neighborhood Serving Corridor land use designation. However, there is a 4-unit apartment building located above the parking, making the site legal non-conforming regarding use. The Project Site at 10000 Culver Boulevard is a three-story office and professional building with the first story footprint occupying the entire Project Site. The second and third stories are smaller and occupy the rear third of the building. Currently the first and second floors contain offices for Sweet Flower while the third floor is a separate creative office business with the name "Black Powder". Both properties are owned by the same entity and will remain as they are currently, with minor modifications to only the first floor and exterior of 10000 Culver Boulevard. Sweet Flower will vacate the second floor and only occupy the first floor as a Cannabis retailer; Black Powder will remain as well as the four-unit apartment building. The vacated second floor will be available for prospective office/professional tenants. A parking garage at the rear of 10000 Culver Boulevard and underneath the second and third floors accommodates four pairs of tandem parking spaces (eight total). Table 1 below summarizes the square footages and/or number of units for the two buildings:
Table 1
ANALYSIS:
The applicant is requesting the following permit as part of their approval: Conditional Use Permit, P2021-0039-CUP for the establishment of a Cannabis Retailer-Storefront and managed parking to ensure compatibility, configuration, design, location; minimize potential impacts of the proposed use; and ensure suitability of the use to the site and surrounding area.
Site Plan/Ground Floor
The Project proposes to reuse a 3,150 square foot ground floor Sweet Flower office use within an existing, three-level, 6,299 square foot commercial office building located on a 7,196 square foot lot at the southwest corner of Lincoln Avenue and Culver Boulevard. Aside from ground level interior tenant improvements and exterior fa?ade and color changes, the building will remain unmodified. The ground floor will include a patron vestibule entrance off Culver Boulevard at the corner with Lincoln Avenue that will lead to an open floor plate with product displays in the center and along the walls. Point of sale will be at the rear of the open floor plate and the employee only areas of the tenant space ("back of house") will be to the rear of the open floor plate. The back of house will include restrooms, offices, product storage areas, and a staff lounge.
Architectural Design, Height, Setbacks
The Project's minimal fa?ade treatment will not affect the existing architecture of the building. Constructed in 1952, the structure is styled in simple straight lines, includes a bow truss roof over the single-story portion facing Culver Boulevard, and has a flat roof over the second and third floors at the rear of the building. The structure is finished in white stucco with minimal fenestration. The front of the building currently has the most glazing occupying approximately half of the Culver Boulevard facing elevation. After alterations, including installation of Sweet Flower signage, most of the Culver Boulevard frontage, the lower two thirds surface, will consist of glazing with a wood door entrance at the northeast portion of the elevation closest to Lincoln Avenue. The building height of 27.5 feet will remain with no proposed area or volume increase in the structure. The proper zoning for the Project Site is Commercial Neighborhood (CN), based on the Site's Neighborhood Serving Corridor land use designation. Pursuant to CCMC Section 17.220.020, the maximum building height in the CN zone is 43 feet; at 27.5 feet, the Site is consistent with height standards.
The Project Site's west and south frontages are adjacent to commercially zoned properties and based on CCMC Section 17.220.020, there no setbacks required for either of these frontages and for the street facing north and east elevations. The building on the Project Site has approximately 100% lot coverage with close to zero setbacks in all directions.
Landscaping
At near 100% lot coverage there is virtually no room for on-site landscaping. Standard project conditions and code requirements will stipulate the Project to be compliant with off-site parkway landscaping.
Signage
Signage will be simple with only the name of the business spelled out in individual letters in the front above the glazing and in the rear above the building's parking garage. A flower logo will also be incorporated in both the front and rear and signage will not conspicuously advertise cannabis. The applicant states that marketing for Sweet Flower involves the following:
? Highly targeted to age-appropriate customers with use of non-traditional communication methods.
? Use of social media.
? Use of specific digital websites that are age-appropriate (21 and over).
Operations
Business operations will be compliant with State law and CCMC Chapter 11.17 and will be subject to operating requirements stipulated in CCMC Section 11.17.200 and 11.17.205. The vestibule serves as a security check to ensure only people 21 and older enter the store. A reception station will be located near the entrance from the vestibule and employees will be stationed on the floor to help costumers retrieve cannabis products that although visible, will be locked behind display cases. Items come in sealed containers and after point of sale, they will be placed in nondescript bags that only state "Sweet Flower". Customers will exit through the vestibule. Sweet Flower also delivers products as is allowed per the CCMC. Cannabis products include a range of topical treatments to edible and smoke products. Drip medicinal cannabis is also sold. Overall, the store will sell both recreational and medical cannabis and the applicant proposes to be open seven days a week from 9:00 AM to 9:00 PM. Signage will be posted on-site that states loitering and consumption of cannabis products on-site or in public are prohibited.
Lighting / Security
Building security will include 24-hour surveillance cameras on all four exterior sides of the building. There are several ceiling-mounted 360-degree cameras and contact point, motion detector, and silent alarms in both the retail floor area and in the back of house. Back of house is secured with employee only access and patrons needing to use the restrooms must be escorted by an employee as required in CCMC Chapter 11.17. Keyed employee access is from the Lincoln Avenue frontage and there is no direct access to back of house from the rear garage.
Parking
As part of the screening and panel process, prospective CUP applicants were informed that they would need to provide the code required retail parking of one space per three hundred and fifty (1/350) square feet of retail space for only the tenant space they would occupy. Currently the on-site parking serving both 10000 Culver Boulevard and 4017 Lincoln Avenue includes the eight parking spaces in the rear garage at 10000 Culver Boulevard and 12 spaces under the four-unit apartment building at 4017 Lincoln Avenue.
A total of seven parking spaces at 4017 Lincoln Ave are reserved for the apartment units; two spaces per unit for two units, one space per unit for the other two units, and one guest space. The remaining five spaces and the eight spaces at 10000 Culver Boulevard are distributed between the two commercial tenants at 10000 Culver Boulevard. The legal non-conforming nature of the parking is not required to be brought up to current code standards except for the Sweet Flower parking.
The current total of 19 spaces must be maintained in addition to the net new commercial parking for the cannabis retailer. At 3,150 square feet, Sweet Flower requires nine (9) parking spaces. Table 2 below shows the required parking for Sweet Flower and the other uses. As shown in Table 2, Sweet Flower requires three (3) additional parking spaces resulting in a total of 23 parking spaces for both sites combined.
Table 2
Under the Zoning Code's Alternative Parking Provisions, aisle stacked parking is allowed with a Conditional Use Permit. More specifically, CCMC Section 17.320.025.G states:
"Automated, semi-automated and stacked parking may be provided to meet the on-site or off-site parking requirements of this Chapter for land uses in Commercial, Industrial, Planned Development or Special Purpose Zoning Districts subject to Conditional Use Permit approval pursuant to Chapter 17.530 by the Planning Commission..."
The applicant has proposed aisle stacked parking with valet operations as part of the CUP for cannabis retail services. Figure 1 below, an excerpt from the predevelopment plans, shows the aisle stacked parking and the valet station (Noted as "V") off Lincoln Avenue. The proposed valet station is next to a yellow painted loading zone curb. Five (5) parking spaces will be loaded along the drive aisle between the parking garages at 10000 Culver Boulevard and 4017 Lincoln Avenue with parking spaces designated for Sweet Flower noted as SF, parking for Black Powder and the second floor office use designated as OFFICE, and the apartment units as RES and RES GUEST.
The distribution of legal non-conforming parking shown in Table 2 above is maintained with the one Residential Guest space shown as one of the aisle stacked spaces during Sweet Flower business hours and occupying one of the two turn around spaces outside of business hours. Staff required two turn around spaces instead of the one originally proposed by the applicant to achieve a more efficient vehicle retrieval system. Additionally, the Building Safety Division required that one ADA space be provided which is shown in Figure 1. A project condition will stipulate that the parking plan in Figure 1 be implemented and that a valet attendant be on-site during Sweet Flower's hours of operation. Under this plan, customers arriving in vehicles will have to leave their vehicles with valet-attendants at the Lincoln Avenue valet station; they will park vehicles on-site. Project conditions will specify that the valet service be complimentary, and that the applicant coordinate with the Public Works Department in securing a curbside valet station. Potential impacts to local businesses are expected to be minimal with a valet curbside off Lincoln Avenue; only the Project Site fronts this portion of Lincoln Avenue.
Figure 1
Mobility and Traffic
The Applicant stated they are committed to encouraging alternate transportation modes. This is especially key to ensuring that the residential community south of the Project Site is not impacted by parking or traffic created by the Project. Attachment No 5, the June 18, 2021, Kimley Horn Traffic Technical Memorandum proposes the following Transportation Demand Management (TDM) measures:
* Transportation subsidies for full-time employees in the form of TAP cards ($55/month), a shared scooter credit ($15/month), a rideshare credit ($30/month), a "Green Transport" bonus of $50 per month for full-time employees who utilize bicycles as their primary source of transportation;
* Transportation subsidies for customers in the form of discounts (5% off) for customers that use an alternate mode of transportation.
* Transportation education including the provision of up-to-date transportation information explaining all commuter options to employees and visitors to Sweet Flower and provision of up-to-date transportation information on the project's website; and
* Bicycle and scooter parking per the project's improvement plan.
* Streetscape improvements to encourage pedestrian activity.
A project condition will require the above TDM measures with the provision that all employees, whether full or part-time receive the benefits noted above. Regarding bicycle and scooter parking, the preliminary plans show five bicycle racks on the Lincoln Avenue parkway, each capable of parking two bicycles, on Lincoln Avenue, north of the valet station. If demand for bicycle parking increases, the Public Works Department will consider an additional five parking spaces adjacent to the five shown on the plans.
The Traffic Technical Memorandum did not identify potential traffic impacts and did not propose traffic mitigation measures. Due to the small commercial tenant space, it is not subject to Vehicle Miles Travelled (VMT) analysis. A project condition will require this analysis should there be VMT adjustments in the future that address smaller scale and similar type projects. A post operation traffic analysis (six to 12 months after business operation commence) will be required as recommended in the Traffic Technical Memorandum and supported by staff. Timing of the analysis submittal will be determined by the City to ensure it accounts for COVID 19 pandemic effects on traffic operations. The post operations analysis will study:
? Multi-modal intersection traffic counts (maximum of 5 study intersections) for both AM and PM peak periods.
? Counts of project generated traffic (turning movement counts at the driveway, passenger's drop-off/pick-up, walking and cycling trips, etc.).
? Level of service analysis at staff determined study intersections to evaluate impact of Project;
? Supplemental traffic and parking analysis, if needed, to address staff or community concerns following occupancy.
Finally, in order to minimize potential traffic or parking impacts on Lincoln Avenue south of the Project Site, the applicant proposes to design and construct an island on Lincoln Avenue adjacent to the project driveway to prevent traffic exiting the site from turning right onto the residential area along Lincoln Avenue. A project condition will require design and construction of the island be reviewed and approved by the Public Works Department.
Sustainability
Energy saving and sustainable design, where applicable, will be required as part of the building permit. Only minimal tenant improvements are proposed and Green Building standards, if applicable (based on the permit valuation) will be required. The following measures will be incorporated throughout the Project:
? Water saving fixtures in all locations including waterless urinals in public restrooms.
? For any new planting, incorporation of low-water and drought tolerant plants in the landscape plan.
? Energy efficient glazing.
? High efficiency heating and air conditioning systems.
? Reliance on fluorescent, LED, or other type of high efficiency systems for all interior and exterior lighting.
? On-site recycling including recycle, organic, and refuse containers.
Trash Removal and Loading
The proposed trash enclosure at the far west end of the Project Site was reviewed and approved by the City's Environmental Programs and Operation (EPO) Division. A project condition will require the applicant to submit a waste management plan to EPO for review and approval during the Building Permit review process. Large vehicle truck deliveries are not required for this use and smaller two axle delivery vehicles that temporarily occupy one street parking space are expected. Delivery operations is similar to other small tenants along Culver Boulevard near the Project Site.
Community Meetings and Public Outreach
Pursuant to the City's Community Outreach Guidelines and Chapter 11.17, the applicant held two (2) community meetings as part of its outreach to neighbors and community members for the Project. Consistent with Chapter 11.17, a notice was mailed to all property owners and applicants within 2,500-feet from the Project Site boundaries. Attachment No. 9 contains the applicant's community meeting notes. At both meetings, the Applicant gave a brief overview of Sweet Flower summarized below:
? Sweet Flower was the highest scoring applicant in the two-phase screening process.
? It has opened four Los Angeles stores since the Culver City process began with over 1,600 five-star customer reviews.
? The business focuses on the following values - Trust & Transparency, Giving back to the Community through charitable and volunteer work, Compliance and Public Safety.
? The business headquarters has been at the Project Site since October of 2018 (office uses only).
? Direct engagement with community members to minimize impacts once Sweet Flower become operational.
Tuesday, October 15, 2019, 7:00 PM (Veterans Memorial Auditorium Garden Room)
The applicant presented the project and then opened a discussion with the residents. Key concerns raised by the community included:
? Lincoln Avenue traffic
? Limited parking
? Safety of residential community with children, elderly.
? Valet operations / Valet complementary?
? Prevention of project related traffic on Lincoln Avenue.
? Assurance jobs at this location will be good, safe jobs.
? Restricting Project exiting traffic to left turns only onto Culver Boulevard
? What is the need for this type of land use at this location?
Several of these concerns have been addressed through project conditions such as creating an island on Lincoln Avenue to restrict exiting from the project to only Culver Boulevard, installation of 24 hour security cameras and alarms, TDM measures, required complementary valet parking, required managed parking, and signage to patrons prohibiting loitering and use of cannabis products on-site or in public.
Thursday, July 30, 2020, at 7:00 PM (Virtual Community Meeting)
The applicant presented the project and then opened a discussion with the residents. There were fewer people in attendance at this meeting and comments were limited; they included:
? Concern about traffic on Lincoln Avenue.
? Removal of Culver Boulevard street parking for a valet stand.
? Average in store duration per customer.
? Individual thanked Sweet Flower for working with Upward Bound House.
? Individual stated support for Sweet Flower.
Project conditions noted herein are intended to reduce impacts to the residential neighborhood south of the Project Site. Additionally, the Applicant clarified that the valet station will be on Lincoln Avenue in a current loading zone and will not remove street parking on Culver Boulevard.
A public notice was mailed to all property owners and occupants within a 2,500-foot radius of the Project Site on September 7, 2021. As of the writing of this staff report, four comments, three opposed and one in favor, have been submitted to the City (Attachment No. 10).
CUP Renewal, City Council Business Permit Approval, and Business Tax Certificate Requirement
The Zoning Code states that a Cannabis Retailer-Storefront shall obtain a CUP that must be renewed every five years. Chapter 11.17 further requires that after approval of the CUP, the business must obtain a Commercial Cannabis Business Permit at a public City Council meeting which must be renewed annually. After approval by the City Council, the business is required to secure a Business Tax Certificate with the City's Finance Department which must also be renewed annually. These City approvals cannot be transferred to other business entities, individuals, or companies nor can the Cannabis Retailer-Storefront change the business location, unless such actions are approved by the City Council.
CEQA/Categorical Exemption:
Pursuant to the California Environmental Quality Act (CEQA) Guidelines, initial review of the project by staff established there are no potentially significant adverse impacts upon the environment, and the project has been determined to be Categorically Exempt pursuant to CEQA Section 15303, Class 3 - New Construction or Conversion of Small Structures, because the proposed project involves conversion of an existing 3,150 square foot building in an urbanized area from an office use to a retail use with negligible modifications to the existing small structure.
CONCLUSION:
Based on the facts contained in this report, the Project is consistent with the applicable General Plan and Zoning provisions of the City, and the necessary findings required to approve the Conditional Use Permit, outlined in CCMC 17.530.020.
Conversion of the former 3,150 square foot office use to a cannabis retailer-storefront would serve to implement the City's cannabis related ordinances, allowing a cannabis storefront to operate in a secure manner for patrons, employees, and the residents and businesses. The proposed cannabis retailer-storefront with project conditions and land use standards achieve both consistency and compatibility with the surrounding area.
ALTERNATIVE OPTIONS:
The following alternative actions may be considered by the Planning Commission:
1. Approve the proposed project with the recommended conditions of approval if the applications are deemed to meet the required findings.
2. Approve the proposed project with additional and/or different conditions of approval, if deemed necessary to meet the required findings and mitigate any new project impacts identified at the meeting.
3. Disapprove the proposed project if the applications do not meet the required findings.
ATTACHMENTS:
1. Draft Resolution No. 2021-P011 with Exhibit A, Conditions of Approval and Exhibit B, Code Requirements
2. Vicinity Map
3. Project Summary
4. Preliminary Development Plans dated August 9, 2021.
5. Traffic Technical Memorandum dated June 18, 2021 prepared by Kimley Horn
6. City Council Resolution 2018-R014 Maximum Allowed Commercial Cannabis Storefronts
7. Applicant Provided Background Information on Sweet Flower Business Model
8. Advisory Court Action Letter
9. Community Meetings Notes dated October 15, 2019, and July 30, 2020
10. Public Correspondence
MOTION:
That the Planning Commission:
Adopt a Resolution Adopting a Categorical Exemption and Approving Conditional Use Permit, P2021-0039-CUP, subject to the Conditions of Approval and applicable Code Requirements as stated in Resolution No. 2021-P011.